MERRILL LYNCH
MINNESOTA
MUNICIPAL
BOND FUND
FUND LOGO
Annual Report
July 31, 1996
This report is not authorized for use as an offer of sale or a
solicitation of an offer to buy shares of the Fund unless
accompanied or preceded by the Fund's current prospectus. Past
performance results shown in this report should not be considered a
representation of future performance. Investment return and
principal value of shares will fluctuate so that shares, when
redeemed, may be worth more or less than their original cost.
Statements and other information herein are as dated and are subject
to change.
<PAGE>
Merrill Lynch Minnesota
Municipal Bond Fund
Merrill Lynch Multi-State
Municipal Series Trust
Box 9011
Princeton, NJ
08543-9011
TO OUR SHAREHOLDERS
The Municipal Market Environment
Municipal bond yields rose dramatically during the six-month period
ended July 31, 1996. Investors became increasingly alarmed that
earlier forecasts of continued moderate growth were overly
optimistic. As indications of stronger growth were released,
particularly the strong employment reports released beginning in
March, fears of associated inflationary pressures mounted and yields
rose in response. By May and June, long-term municipal bond yields
rose into the 6.25%--6.30% range.
<PAGE>
However, in early July the combination of the Federal Reserve Board
suggesting that growth was expected to slow later in 1996 and a
temporary stock market correction allowed municipal bond yields to
fall as investors scrambled to purchase relatively scarce
securities. As measured by the Bond Buyer Revenue Bond Index, long-
term, A-rated uninsured tax-exempt bonds yielded 6.02% at July 31,
1996, an increase of over 30 basis points (0.30%) in the last six
months. Long-term US Treasury bond yields rose significantly over
the same period. By July 31, 1996, yields on US Treasury bonds
increased almost 100 basis points to end the six-month period at
6.97%.
The municipal bond market's recent outperformance as compared to its
taxable counterpart was largely the result of two principal factors.
First, much of the concern in the tax-exempt market regarding the
potential loss of the inherent tax-advantage of the municipal bonds
dissipated. For much of 1995, various tax proposals, such as the
flat tax or national sales tax, were put forward either to reduce
the national debt or reform the current tax system. Most of these
proposals would have severely limited the tax advantages enjoyed by
the municipal bond market. However, in February 1996, the Kemp
Commission released its findings regarding various tax reform
proposals. While noting that numerous changes should be made, no
mention of curtailing or stopping municipal bonds' current favored
tax status was made.
The second major factor leading to the municipal bond market's
recent outperformance was the return of a more favorable technical
environment. The rate of increase in new bond issuance recently
slowed. Over the last 12 months, approximately $175 billion in long-
term municipal securities were issued, an increase of over 27% as
compared to the same period a year earlier. Much of this increase
was the result of issuers seeking to refinance their existing higher-
couponed debt as interest rates declined in 1995 and early 1996. As
interest rates rose, these financings became increasingly
economically impractical and issuance declined. Over the last six
months, less than $70 billion in long-term tax-exempt securities
were underwritten, an increase of 20% versus the comparable period a
year earlier. Only $43 billion in tax-exempt securities were issued
in the last three months, a total essentially unchanged from the
comparable quarter in 1995. In July 1996, less than $10 billion in
long-term municipal bonds were issued, representing the lowest
issuance for the month of July since 1990.
At the same time investor demand remained consistently strong. With
nominal new-issue yields above 6%, retail investor interest was
steady. Additionally, investors received over $50 billion this June
and July in assets derived from coupon income, bond maturities and
proceeds from early redemptions. Annual new bond issuance has
declined in recent years and is expected to remain below levels seen
in the early 1990s. Consequently, as the higher-coupon bonds issued
in the early-to-mid 1980s were redeemed at their first optional call
dates, the total number of outstanding tax-exempt bonds has
declined. This combination of a declining net supply and significant
amounts of assets helped maintain investor demand in recent months.
<PAGE>
It is unlikely that the municipal bond market will continue to
significantly outperform US Treasury securities in the near future.
The tax-exempt bond market's recent performance led to the yield
ratio between long-term taxable and tax-exempt securities falling
from in excess of 90% to approximately 85%. While historically still
very attractive, some institutional investors, particularly short-
term traders, began to view the tax-exempt bond market's recent
outperformance as an opportunity to sell a relatively expensive
asset. However, to the long-term investor, such a sale would
represent the loss of an attractively priced asset which may not be
easily replaced given the relative scarcity of municipal bonds under
present supply conditions.
Looking ahead, no clear consensus for the direction of interest
rates currently exists. Perhaps, the primary focus going forward
will be the extent to which the increase in interest rates seen thus
far in 1996 will negatively impact future economic growth. Should
growth slow in the interest rate-sensitive sectors of the economy,
like housing, auto, and consumer spending, as many economists assert
is likely, then bond yields are likely to decline. Under such a
scenario, the municipal bond market's performance is likely to
closely mirror that of the US Treasury bond market.
Fiscal Year in Review
During the year ended July 31, 1996, we slowly shifted away from the
neutral posture we adopted for the Fund in late 1995 and early 1996
toward a more defensive structuring. This shift largely involved the
sale of interest rate-sensitive issues and the corresponding
purchase of higher-couponed, more income-oriented securities. We
increased the Fund's cash reserve position at times to help preserve
the Fund's principal valuation during periods of significant
interest rate volatility. However, we were reluctant to raise
significant cash reserves or to maintain these reserves for an
extended period of time. While tax-exempt interest rates generally
rose over the past six months, there were a number of episodes of
declining interest rates. Continuously held large cash reserves
would impede the Fund from recouping the short-term price
appreciation associated with these episodes. More important, raising
large cash reserves would have a significant negative impact on the
Fund's yields.
New-issue supply in Minnesota was similar to national issuance over
the past six months. Over $2.1 billion in long-term municipal
securities were issued by Minnesota municipalities during the six
months ended July 31, 1996. However, much of this issuance was
concentrated in a few larger issues which inhibited the Fund's
ability to diversify its holdings somewhat. Additionally, given the
strong investor demand as we noted, much of the Minnesota new bond
issuance was structured in favor of individual retail investors. The
resultant current coupon issues were unattractive given the Fund's
current defensive strategy. The Fund's present strategy, as well as
the more aggressive posture it maintained in late 1995 and early
1996, benefited its total returns for the fiscal year. Despite its
present higher-than-normal cash reserve position, the Fund continued
to provide its shareholders with attractive yields for the 12 months
ended July 31, 1996.
<PAGE>
Looking ahead for the remainder of 1996, we expect to maintain the
Fund's present defensive posture until a clearer consensus regarding
the near-term direction of interest rates can be established. This
strategy may result in some potential limiting of capital
appreciation should tax-exempt bond yields fall suddenly and
dramatically. However, the Fund's present structure should enable it
to better preserve much of its principal valuation and maintain its
attractive current dividends should municipal bond yields either
remain stable or resume their decline.
In Conclusion
We appreciate your ongoing interest in Merrill Lynch Minnesota
Municipal Bond Fund, and we look forward to serving your investment
needs in the months and years to come.
Sincerely,
(Arthur Zeikel)
Arthur Zeikel
President
(Vincent R. Giordano)
Vincent R. Giordano
Senior Vice President
<PAGE>
(Fred K. Stuebe)
Fred K. Stuebe
Vice President and Portfolio Manager
September 6, 1996
PERFORMANCE DATA
About Fund Performance
Investors are able to purchase shares of the Fund through the
Merrill Lynch Select Pricing SM System, which offers four pricing
alternatives:
* Class A Shares incur a maximum initial sales charge (front-end load)
of 4% and bear no ongoing distribution or account maintenance fees.
Class A Shares are available only to eligible investors.
* Class B Shares are subject to a maximum contingent deferred sales
charge of 4% if redeemed during the first year, decreasing 1% each
year thereafter to 0% after the fourth year. In addition, Class B
Shares are subject to a distribution fee of 0.25% and an account
maintenance fee of 0.25%. These shares automatically convert to
Class D Shares after approximately 10 years. (There is no initial
sales charge for automatic share conversions.)
* Class C Shares are subject to a distribution fee of 0.35% and an
account maintenance fee of 0.25%. In addition, Class C Shares are
subject to a 1% contingent deferred sales charge if redeemed within
one year of purchase.
* Class D Shares incur a maximum initial sales charge of 4% and an
account maintenance fee of 0.10% (but no distribution fee).
None of the past results shown should be considered a representation
of future performance. Investment return and principal value of
shares will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost. Dividends paid to each class
of shares will vary because of the different levels of account
maintenance, distribution and transfer agency fees applicable to
each class, which are deducted from the income available to be paid
to shareholders.
<PAGE>
<TABLE>
Recent Performance Results
<CAPTION>
12 Month 3 Month
7/31/96 4/30/96 7/31/95 % Change % Change
<S> <C> <C> <C> <C> <C>
Class A Shares* $10.28 $10.21 $10.31 -0.29% +0.69%
Class B Shares* 10.28 10.22 10.31 -0.29 +0.59
Class C Shares* 10.28 10.22 10.31 -0.29 +0.59
Class D Shares* 10.28 10.22 10.31 -0.29 +0.59
Class A Shares--Total Return* +4.98(1) +1.95(2)
Class B Shares--Total Return* +4.44(3) +1.72(4)
Class C Shares--Total Return* +4.33(5) +1.69(6)
Class D Shares--Total Return* +4.88(7) +1.82(8)
Class A Shares--Standardized 30-day Yield 4.50%
Class B Shares--Standardized 30-day Yield 4.18%
Class C Shares--Standardized 30-day Yield 4.08%
Class D Shares--Standardized 30-day Yield 4.41%
<FN>
*Investment results shown do not reflect sales charges; results
shown would be lower if a sales charge was included.
(1)Percent change includes reinvestment of $0.535 per share ordinary
income dividends.
(2)Percent change includes reinvestment of $0.127 per share ordinary
income dividends.
(3)Percent change includes reinvestment of $0.482 per share ordinary
income dividends.
(4)Percent change includes reinvestment of $0.114 per share ordinary
income dividends.
(5)Percent change includes reinvestment of $0.472 per share ordinary
income dividends.
(6)Percent change includes reinvestment of $0.111 per share ordinary
income dividends.
(7)Percent change includes reinvestment of $0.525 per share ordinary
income dividends.
(8)Percent change includes reinvestment of $0.124 per share ordinary
income dividends.
</TABLE>
PERFORMANCE DATA (continued)
<TABLE>
Performance Summary--Class A Shares
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<S> <C> <C> <C> <C> <C>
3/27/92--12/31/92 $10.00 $10.34 -- $0.500 + 8.55%
1993 10.34 10.92 $0.081 0.636 +12.81
1994 10.92 9.69 -- 0.558 - 6.27
1995 9.69 10.69 -- 0.550 +16.33
1/1/96--7/31/96 10.69 10.28 -- 0.294 - 0.96
------ ------
Total $0.081 Total $2.538
<PAGE>
Cumulative total return as of 7/31/96: +32.24%**
</TABLE>
<TABLE>
Performance Summary--Class B Shares
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change***
<S> <C> <C> <C> <C> <C>
3/27/92--12/31/92 $10.00 $10.34 -- $0.460 + 8.13%
1993 10.34 10.92 $0.081 0.581 +12.24
1994 10.92 9.70 -- 0.506 - 6.65
1995 9.70 10.69 -- 0.497 +15.62
1/1/96--7/31/96 10.69 10.28 -- 0.264 - 1.25
------ ------
Total $0.081 Total $2.308
Cumulative total return as of 7/31/96: +29.35%***
</TABLE>
<TABLE>
Performance Summary--Class C Shares
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change***
<S> <C> <C> <C> <C> <C>
10/21/94--12/31/94 $ 9.99 $ 9.70 -- $0.095 - 1.94%
1995 9.70 10.69 -- 0.485 +15.49
1/1/96--7/31/96 10.69 10.28 -- 0.258 - 1.31
------
Total $0.838
Cumulative total return as of 7/31/96: +11.77%***
</TABLE>
<PAGE>
<TABLE>
Performance Summary--Class D Shares
<CAPTION>
Net Asset Value Capital Gains
Period Covered Beginning Ending Distributed Dividends Paid* % Change**
<S> <C> <C> <C> <C> <C>
10/21/94--12/31/94 $ 9.99 $ 9.70 -- $0.106 - 1.83%
1995 9.70 10.70 -- 0.540 +16.20
1/1/96--7/31/96 10.70 10.28 -- 0.288 - 1.11
------
Total $0.934
Cumulative total return as of 7/31/96: +12.81%**
<FN>
*Figures may include short-term capital gains distributions.
**Figures assume reinvestment of all dividends and capital gains
distributions at net asset value on the payable date, and do not
include sales charge; results would be lower if sales charge was
included.
***Figures assume reinvestment of all dividends and capital gains
distributions at net asset value on the payable date, and do not
reflect deduction of any sales charge; results would be lower if
sales charge was deducted.
</TABLE>
PERFORMANCE DATA (concluded)
Total Return Based on a $10,000 Investment--Class A Shares and Class B Shares
A line graph depicting the growth of an investment in the Fund's
Class A Shares and Class B Shares compared to growth of an
investment in the Lehman Brothers Municipal Bond Index. Beginning
and ending values are:
3/27/92** 7/96
ML Minnesota Municipal Bond Fund++--
Class A Shares* $ 9,600 $12,695
ML Minnesota Municipal Bond Fund++--
Class B Shares* $10,000 $12,935
Lehman Brothers Municipal Bond
Index++++ $10,000 $13,629
<PAGE>
Total Return Based on a $10,000 Investment--Class C Shares and Class D Shares
A line graph depicting the growth of an investment in the Fund's
Class C Shares and Class D Shares compared to growth of an
investment in the Lehman Brothers Municipal Bond Index. Beginning
and ending values are:
10/21/94** 7/96
ML Minnesota Municipal Bond Fund++--
Class C Shares* $10,000 $11,177
ML Minnesota Municipal Bond Fund++--
Class D Shares* $ 9,600 $10,831
Lehman Brothers Municipal Bond
Index++++ $10,000 $11,840
[FN]
*Assuming maximum sales charge, transaction costs and other
operating expenses, including advisory fees.
**Commencement of Operations.
++ML Minnesota Municipal Bond Fund invests primarily in long-term
investment-grade obligations issued by or on behalf of the State of
Minnesota, its political subdivisions, agencies and
instrumentalities and obligations of other qualifying issuers.
++++This unmanaged Index consists of long-term revenue bonds,
prerefunded bonds, general obligation bonds and insured bonds.
Past performance is not predictive of future performance.
Average Annual Total Return
% Return Without % Return With
Sales Charge Sales Charge**
Class A Shares*
Year Ended 6/30/96 +4.67% +0.49%
Inception (3/27/92)
through 6/30/96 +6.60 +5.59
[FN]
*Maximum sales charge is 4%.
**Assuming maximum sales charge.
% Return % Return
Without CDSC With CDSC**
Class B Shares*
<PAGE>
Year Ended 6/30/96 +4.14% +0.16%
Inception (3/27/92)
through 6/30/96 +6.06 +6.06
[FN]
*Maximum contingent deferred sales charge is 4% and is reduced to 0%
after 4 years.
**Assuming payment of applicable contingent deferred sales charge.
% Return % Return
Without CDSC With CDSC**
Class C Shares*
Year Ended 6/30/96 +4.03% +3.03%
Inception (10/21/94)
through 6/30/96 +6.38 +6.38
[FN]
*Maximum contingent deferred sales charge is 1% and is reduced to 0%
after 1 year.
**Assuming payment of applicable contingent deferred sales charge.
% Return Without % Return With
Sales Charge Sales Charge**
Class D Shares*
Year Ended 6/30/96 +4.67% +0.48%
Inception (10/21/94)
through 6/30/96 +7.00 +4.45
[FN]
*Maximum sales charge is 4%.
**Assuming maximum sales charge.
PORTFOLIO ABBREVIATIONS
To simplify the listings of Merrill Lynch Minnesota Municipal Bond
Fund's portfolio holdings in the Schedule of Investments, we have
abbreviated the names of many of the securities according to the
list below and at right.
<PAGE>
AMT Alternative Minimum Tax (subject to)
EDA Economic Development Authority
GO Government Obligation Bonds
HFA Housing Finance Agency
IDR Industrial Development Revenue Bonds
IRS Inverse Rate Securities
M/F Multi-Family
PCR Pollution Control Revenue Bonds
S/F Single-Family
UT Unlimited Tax
VRDN Variable Rate Demand Notes
<TABLE>
SCHEDULE OF INVESTMENTS (in Thousands)
<CAPTION>
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
Minnesota--100.7%
<S> <S> <C> <S> <C>
NR* A $1,475 Alexandria, Minnesota, Independent School District No. 206, UT, Series A,
6.30% due 2/01/2010 $ 1,546
A1+ Aa3 2,225 Anoka County, Minnesota, Solid Waste Disposal Revenue Bonds (National
Rural Utilities), AMT, Series A, 6.95% due 12/01/2008 2,364
A1+ NR* 1,100 Beltrami County, Minnesota, Environmental Control Revenue Bonds (Northwood
Panelboard Co. Project), VRDN, AMT, 3.65% due 7/01/2025 (a) 1,100
NR* Baa1 1,000 Clay County, Minnesota, Housing and Redevelopment Authority, Lease Revenue
Bonds, 6.50% due 2/01/2014 (i) 1,016
AAA NR* 3,530 Coon Rapids, Minnesota, M/F Housing Revenue Refunding Bonds (Browns Meadow),
AMT, 6.85% due 8/01/2033 (h) 3,624
AAA NR* 1,000 Duluth, Minnesota, EDA, Hospital Facilities Revenue Refunding Bonds (Saint
Luke's Hospital of Duluth), Series B, 6.40% due 5/01/2018 (c) 1,043
A1+ NR* 1,600 Hubbard County, Minnesota, Solid Waste Disposal Revenue Bonds (Potlatch
Corporation Project), VRDN, AMT, 3.65% due 8/01/2014 (a) 1,600
A- A 2,000 Minneapolis and Saint Paul, Minnesota, Housing and Redevelopment Authority,
Health Care System Revenue Bonds (Group Health Plan Incorporated Project),
6.90% due 10/15/2022 2,160
AA- A1 1,600 Minneapolis, Minnesota, Community Development Agency, PCR (Northern System
Power Co. Project), VRDN, 3.70% due 3/01/2011 (a) 1,600
AAA Aaa 1,500 Minneapolis, Minnesota, Sales Tax Refunding Bonds, GO, UT, 6.25%
due 4/01/2012 1,575
<PAGE>
AAA Aa1 1,300 Minnesota Public Facilities Authority, Water, PCR, Series A, 6.50%
due 3/01/2014 1,390
Minnesota State, GO, UT:
AAA NR* 1,000 6.50% due 8/01/2001 (g) 1,085
AAA NR* 1,000 6.625% due 8/01/2001 (g) 1,088
AA+ Aaa 1,500 6% due 10/01/2014 1,542
Minnesota State HFA, S/F Mortgage:
AA+ Aa 1,750 AMT, Series E, 6.85% due 1/01/2024 1,805
AA+ Aa 1,480 AMT, Series L, 6.70% due 7/01/2020 1,519
AA+ Aa 860 Series A, 6.95% due 7/01/2016 902
AA+ Aa 1,635 Series D-1, 6.50% due 1/01/2017 1,681
AAA NR* 1,000 Minnesota State Higher Educational Facilities Authority, Mortgage Revenue
Bonds (Augsburg College), Series 3-G, 6.50% due 1/01/2011 (c) 1,041
</TABLE>
<TABLE>
SCHEDULE OF INVESTMENTS (concluded) (in Thousands)
<CAPTION>
S&P Moody's Face Value
Ratings Ratings Amount Issue (Note 1a)
Minnesota (concluded)
<S> <S> <C> <S> <C>
Minnesota State Higher Educational Facilities Authority, Revenue
Refunding Bonds (Macalester College), Series 3-J:
AA- Aa $ 550 6.30% due 3/01/2014 $ 574
AA- Aa 2,250 6.40% due 3/01/2022 2,357
AA Aa1 2,000 North Saint Paul, Minnesota, Maplewood Independent School District No.
622, UT, 5.125% due 2/01/2020 1,835
A A 890 Northern Minnesota Municipal Power Agency, Electric System Revenue
Refunding Bonds, Series A, 7.25% due 1/01/2016 949
NR* A 500 Northfield, Minnesota, College Facilities Revenue Refunding Bonds (Saint
Olaf College Project), 6.40% due 10/01/2021 521
AAA Aaa 1,000 Prior Lake, Minnesota, Independent School District No. 719, UT, Series A,
5.25% due 2/01/2016 (f) 947
AA- A1 1,300 Red Wing, Minnesota, PCR (Northern States Power Company Project), VRDN,
3.70% due 3/01/2011 (a) 1,300
AA+ NR* 3,450 Rochester, Minnesota, Health Care Facilities Revenue Bonds (Mayo Foundation),
IRS, Series H, 8.067% due 11/15/2015 (j) 3,411
<PAGE>
AAA Aaa 1,825 Saint Cloud, Minnesota, Hospital Facilities Revenue Refunding Bonds
(Saint Cloud Hospital), Series B, 5% due 7/01/2020 (b) 1,622
AAA Aaa 1,000 Saint Francis, Minnesota, Independent School District No. 015, UT, Series A,
6.35% due 2/01/2013 (k) 1,059
Saint Paul, Minnesota, Housing and Redevelopment Authority Revenue Bonds:
A- NR* 1,750 Parking, Series A, 6.55% due 8/01/2000 (g) 1,902
A A 3,175 Sales Tax (Civic Center Project), 5.55% due 11/01/2023 (d) 3,027
AAA NR* 910 S/F Mortgage, Refunding, Series C, 6.95% due 12/01/2031 (e) 941
Saint Paul, Minnesota, Independent School District No. 625, UT:
AA Aa 2,225 5.25% due 2/01/2014 2,134
AA Aa 1,125 Series B, 6.25% due 2/01/2001 (g) 1,199
Sartell, Minnesota, Refunding (Champion International):
BBB Baa1 990 IDR, 6.95% due 7/01/2012 1,042
BBB Baa1 665 PCR, 6.95% due 10/01/2012 700
AAA Aaa 4,000 Southern Minnesota Municipal Power Agency, Power Supply Systems, Revenue
Refunding Bonds, Series A, 6.085%** due 1/01/2024 (l) 781
AAA Aaa 820 Western Minnesota Municipal Power Agency, Power Supply Revenue Bonds,
Series A, 6.375% due 1/01/2016 (d) 874
Total Investments (Cost--$54,702)--100.7% 56,856
Liabilities in Excess of Other Assets--(0.7%) (373)
-------
Net Assets--100.0% $56,483
=======
<FN>
(a)The interest rate is subject to change periodically based upon
prevailing market rates. The interest rate shown is the rate in
effect at July 31, 1996.
(b)AMBAC Insured.
(c)Insured by Connie Lee.
(d)Escrowed to Maturity.
(e)FNMA Collateralized.
(f)FGIC Insured.
(g)Prerefunded.
(h)FHA Insured.
(i)Bank Qualified.
(j)The interest rate is subject to change periodically and inversely
based upon prevailing market rates. The interest rate shown is the
rate in effect at July 31, 1996.
(k)FSA Insured.
(l)MBIA Insured.
*Not Rated.
**Represents a zero coupon bond; the interest rate shown is the
effective yield at the time of purchase by the Fund.
Ratings of issues shown have not been audited by Deloitte & Touche LLP.
<PAGE>
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION
<TABLE>
Statement of Assets and Liabilities as of July 31, 1996
<S> <S> <C> <C>
Assets: Investments, at value (identified cost--$54,701,947) (Note 1a) $ 56,855,714
Cash 47,870
Receivables:
Interest $ 906,487
Securities sold 80,448
Beneficial interest sold 9,989 996,924
------------
Deferred organization expenses (Note 1e) 5,221
Prepaid registration fees and other assets (Note 1e) 20,046
------------
Total assets 57,925,775
------------
Liabilities: Payables:
Securities purchased 1,061,128
Beneficial interest redeemed 168,872
Dividends to shareholders (Note 1f) 62,507
Investment adviser (Note 2) 26,486
Distributor (Note 2) 21,447 1,340,440
------------
Accrued expenses and other liabilities 101,988
------------
Total liabilities 1,442,428
------------
Net Assets: Net assets $ 56,483,347
============
<PAGE>
Net Assets Class A Shares of beneficial interest, $.10 par value,
Consist of: unlimited number of shares authorized $ 57,261
Class B Shares of beneficial interest, $.10 par value,
unlimited number of shares authorized 473,808
Class C Shares of beneficial interest, $.10 par value,
unlimited number of shares authorized 11,862
Class D Shares of beneficial interest, $.10 par value,
unlimited number of shares authorized 6,646
Paid-in capital in excess of par 55,819,752
Accumulated realized capital losses on investments
--net (Note 5) (1,229,809)
Accumulated distributions in excess of realized capital
gains--net (Note 1f) (809,940)
Unrealized appreciation on investments--net 2,153,767
------------
Net assets $ 56,483,347
============
Net Asset Value: Class A--Based on net assets of $5,884,357 and 572,608
shares of beneficial interest outstanding $ 10.28
============
Class B--Based on net assets of $48,696,225 and 4,738,076
shares of beneficial interest outstanding $ 10.28
============
Class C--Based on net assets of $1,219,215 and 118,616
shares of beneficial interest outstanding $ 10.28
============
Class D--Based on net assets of $683,550 and 66,462
Shares of beneficial interest outstanding $ 10.28
============
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION (continued)
<TABLE>
Statement of Operations
<CAPTION>
For the Year Ended
July 31, 1996
<S> <S> <C> <C>
Investment Income Interest and amortization of premium and discount earned $ 3,589,994
(Note 1d):
<PAGE>
Expenses: Investment advisory fees (Note 2) $ 328,665
Account maintenance and distribution fees--Class B (Note 2) 258,745
Professional fees 60,273
Printing and shareholder reports 56,419
Accounting services (Note 2) 52,951
Transfer agent fees--Class B (Note 2) 35,169
Registration fees (Note 1e) 13,982
Amortization of organization expenses (Note 1e) 8,097
Pricing fees 5,937
Account maintenance and distribution fees--Class C (Note 2) 5,345
Custodian fees 4,397
Transfer agent fees--Class A (Note 2) 3,618
Trustees' fees and expenses 2,852
Account maintenance fees--Class D (Note 2) 713
Transfer agent fees--Class C (Note 2) 642
Transfer agent fees--Class D (Note 2) 406
Other 1,051
------------
Total expenses before reimbursement 839,262
Reimbursement of expenses (Note 2) (65,688)
------------
Total expenses after reimbursement 773,574
------------
Investment income--net 2,816,420
------------
Realized & Realized loss on investments--net (284,411)
Unrealized Change in unrealized appreciation on investments--net 93,704
Gain (Loss) on ------------
Investments--Net Net Increase in Net Assets Resulting from Operations $ 2,625,713
(Notes 1b, 1d & 3): ============
See Notes to Financial Statements.
</TABLE>
<PAGE>
FINANCIAL INFORMATION (continued)
<TABLE>
Statements of Changes in Net Assets
<CAPTION>
For the Year Ended July 31,
Increase (Decrease) in Net Assets: 1996 1995
<S> <S> <C> <C>
Operations: Investment income--net $ 2,816,420 $ 3,075,897
Realized loss on investments--net (284,411) (945,500)
Change in unrealized appreciation on investments--net 93,704 506,946
------------ ------------
Net increase in net assets resulting from operations 2,625,713 2,637,343
------------ ------------
Dividends to Investment income--net:
Shareholders Class A (331,165) (407,132)
(Note 1f): Class B (2,408,920) (2,647,786)
Class C (40,224) (6,180)
Class D (36,111) (14,799)
------------ ------------
Net decrease in net assets resulting from dividends
to shareholders (2,816,420) (3,075,897)
------------ ------------
Beneficial Interest Net decrease in net assets derived from beneficial interest
Transactions transactions (3,455,361) (5,201,307)
(Note 4): ------------ ------------
Net Assets: Total decrease in net assets (3,646,068) (5,639,861)
Beginning of year 60,129,415 65,769,276
------------ ------------
End of year $ 56,483,347 $ 60,129,415
============ ============
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION (continued)
<PAGE>
<TABLE>
Financial Highlights
<CAPTION>
Class A
For the
Period
The following per share data and ratios have been derived Mar. 27,
from information provided in the financial statements. 1992++ to
For the Year Ended July 31, July 31,
Increase (Decrease) in Net Asset Value: 1996 1995 1994 1993 1992
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 10.31 $ 10.33 $ 10.83 $ 10.58 $ 10.00
Operating -------- -------- -------- -------- --------
Performance: Investment income--net .54 .55 .55 .58 .20
Realized and unrealized gain (loss) on
investments--net (.03) (.02) (.35) .30 .58
-------- -------- -------- -------- --------
Total from investment operations .51 .53 .20 .88 .78
-------- -------- -------- -------- --------
Less dividends and distributions:
Investment income--net (.54) (.55) (.55) (.58) (.20)
Realized gain on investments--net -- -- -- (.05) --
In excess of realized gain on
investments--net -- -- (.15) -- --
-------- -------- -------- -------- --------
Total dividends and distributions (.54) (.55) (.70) (.63) (.20)
-------- -------- -------- -------- --------
Net asset value, end of period $ 10.28 $ 10.31 $ 10.33 $ 10.83 $ 10.58
======== ======== ======== ======== ========
Total Investment Based on net asset value per share 4.98% 5.44% 1.87% 8.71% 7.88%+++
Return:** ======== ======== ======== ======== ========
Ratios to Expenses, net of reimbursement .84% .75% .69% .45% .12%*
Average ======== ======== ======== ======== ========
Net Assets: Expenses .95% .92% 1.03% 1.04% 1.18%*
======== ======== ======== ======== ========
Investment income--net 5.16% 5.51% 5.18% 5.56% 5.73%*
======== ======== ======== ======== ========
Supplemental Net assets, end of period (in thousands) $ 5,884 $ 6,936 $ 8,810 $ 12,859 $ 9,493
Data: ======== ======== ======== ======== ========
Portfolio turnover 53.99% 22.36% 58.67% 23.83% 30.39%
======== ======== ======== ======== ========
<PAGE>
<FN>
*Annualized.
**Total investment returns exclude the effects of sales loads.
++Commencement of Operations.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION (continued)
<TABLE>
Financial Highlights (continued)
<CAPTION>
Class B
For the
Period
The following per share data and ratios have been derived Mar. 27,
from information provided in the financial statements. 1992++ to
For the Year Ended July 31, July 31,
Increase (Decrease) in Net Asset Value: 1996 1995 1994 1993 1992
<S> <S> <C> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 10.31 $ 10.33 $ 10.83 $ 10.58 $ 10.00
Operating -------- -------- -------- -------- --------
Performance: Investment income--net .48 .50 .50 .53 .18
Realized and unrealized gain (loss) on
investments--net (.03) (.02) (.35) .30 .58
-------- -------- -------- -------- --------
Total from investment operations .45 .48 .15 .83 .76
-------- -------- -------- -------- --------
Less dividends and distributions:
Investment income--net (.48) (.50) (.50) (.53) (.18)
Realized gain on investments--net -- -- -- (.05) --
In excess of realized gain on
investments--net -- -- (.15) -- --
-------- -------- -------- -------- --------
Total dividends and distributions (.48) (.50) (.65) (.58) (.18)
Net asset value, end of period $ 10.28 $ 10.31 $ 10.33 $ 10.83 $ 10.58
======== ======== ======== ======== ========
Total Investment Based on net asset value per share 4.44% 4.91% 1.35% 8.16% 7.69%+++
Return:** ======== ======== ======== ======== ========
<PAGE>
Ratios to Expenses, net of reimbursement 1.35% 1.27% 1.21% .96% .62%*
Average ======== ======== ======== ======== ========
Net Assets: Expenses 1.46% 1.44% 1.54% 1.55% 1.70%*
======== ======== ======== ======== ========
Investment income--net 4.64% 5.00% 4.70% 5.03% 5.13%*
======== ======== ======== ======== ========
Supplemental Net assets, end of period (in thousands). $ 48,696 $ 52,023 $ 56,960 $ 54,921 $ 32,686
Data: ======== ======== ======== ======== ========
Portfolio turnover 53.99% 22.36% 58.67% 23.83% 30.39%
======== ======== ======== ======== ========
<FN>
*Annualized.
**Total investment returns exclude the effects of sales loads.
++Commencement of Operations.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
FINANCIAL INFORMATION (concluded)
<TABLE>
Financial Highlights (concluded)
<CAPTION>
Class C Class D
For the For the
For the Period For the Period
The following per share data and ratios have been derived Year Oct. 21, Year Oct. 21,
from information provided in the financial statements. Ended 1994++ to Ended 1994++ to
July 31, July 31, July 31, July 31,
Increase (Decrease) in Net Asset Value: 1996 1995 1996 1995
<S> <S> <C> <C> <C> <C>
Per Share Net asset value, beginning of period $ 10.31 $ 9.99 $ 10.31 $ 9.99
Operating -------- -------- -------- --------
Performance: Investment income--net .47 .37 .53 .41
Realized and unrealized gain (loss) on investments--net (.03) .32 (.03) .32
-------- -------- -------- --------
Total from investment operations .44 .69 .50 .73
-------- -------- -------- --------
Less dividends from investment income--net (.47) (.37) (.53) (.41)
-------- -------- -------- --------
Net asset value, end of period $ 10.28 $ 10.31 $ 10.28 $ 10.31
======== ======== ======== ========
<PAGE>
Total Investment Based on net asset value per share 4.33% 7.13%+++ 4.88% 7.57%+++
Return:** ======== ======== ======== ========
Ratios to Expenses, net of reimbursement 1.48% 1.46%* .94% .92%*
Average ======== ======== ======== ========
Net Assets: Expenses 1.57% 1.61%* 1.05% 1.07%*
======== ======== ======== ========
Investment income--net 4.50% 4.70%* 5.05% 5.27%*
======== ======== ======== ========
Supplemental Net assets, end of period (in thousands) $ 1,219 $ 375 $ 684 $ 796
Data: ======== ======== ======== ========
Portfolio turnover 53.99% 22.36% 53.99% 22.36%
======== ======== ======== ========
<FN>
*Annualized.
**Total investment returns exclude the effects of sales loads.
++Commencement of Operations.
+++Aggregate total investment return.
See Notes to Financial Statements.
</TABLE>
NOTES TO FINANCIAL STATEMENTS
1. Significant Accounting Policies:
Merrill Lynch Minnesota Municipal Bond Fund (the "Fund") is part of
Merrill Lynch Multi-State Municipal Series Trust (the "Trust"). The
Fund is registered under the Investment Company Act of 1940 as a non-
diversified, open-end management investment company. The Fund offers
four classes of shares under the Merrill Lynch Select Pricing SM
System. Shares of Class A and Class D are sold with a front-end
sales charge. Shares of Class B and Class C may be subject to a
contingent deferred sales charge. All classes of shares have
identical voting, dividend, liquidation and other rights and the
same terms and conditions, except that Class B, Class C and Class D
Shares bear certain expenses related to the account maintenance of
such shares, and Class B and Class C Shares also bear certain
expenses related to the distribution of such shares. Each class has
exclusive voting rights with respect to matters relating to its
account maintenance and distribution expenditures. The following is
a summary of significant accounting policies followed by the Fund.
<PAGE>
(a) Valuation of investments--Municipal bonds and other portfolio
securities in which the Fund invests are traded primarily in the
over-the-counter municipal bond and money markets and are valued at
the last available bid price in the over-the-counter market or on
the basis of yield equivalents as obtained from one or more dealers
that make markets in the securities. Financial futures contracts and
options thereon, which are traded on exchanges, are valued at their
settlement prices as of the close of such exchanges. Short-term
investments with remaining maturities of sixty days or less are
valued at amortized cost, which approximates market value.
Securities and assets for which market quotations are not readily
available are valued at fair value as determined in good faith by or
under the direction of the Board of Trustees of the Trust, including
valuations furnished by a pricing service retained by the Trust,
which may utilize a matrix system for valuations. The procedures of
the pricing service and its valuations are reviewed by the officers
of the Trust under the general supervision of the Trustees.
(b) Derivative financial instruments--The Fund may engage in various
portfolio strategies to seek to increase its return by hedging its
portfolio against adverse movements in the debt markets. Losses may
arise due to changes in the value of the contract or if the
counterparty does not perform under the contract.
* Financial futures contracts--The Fund may purchase or sell interest
rate futures contracts and options on such futures contracts for the
purpose of hedging the market risk on existing securities or the
intended purchase of securities. Futures contracts are contracts for
delayed delivery of securities at a specific future date and at a
specific price or yield. Upon entering into a contract, the Fund
deposits and maintains as collateral such initial margin as required
by the exchange on which the transaction is effected. Pursuant to
the contract, the Fund agrees to receive from or pay to the broker
an amount of cash equal to the daily fluctuation in value of the
contract. Such receipts or payments are known as variation margin
and are recorded by the Fund as unrealized gains or losses. When the
contract is closed, the Fund records a realized gain or loss equal
to the difference between the value of the contract at the time it
was opened and the value at the time it was closed.
(c) Income taxes--It is the Fund's policy to comply with the
requirements of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all of its
taxable income to its shareholders. Therefore, no Federal income tax
provision is required.
<PAGE>
(d) Security transactions and investment income--Security
transactions are recorded on the dates the transactions are entered
into (the trade dates). Interest income is recognized on the accrual
basis. Discounts and market premiums are amortized into interest
income. Realized gains and losses on security transactions are
determined on the identified cost basis.
(e) Deferred organization expenses and prepaid registration fees--
Deferred organization expenses are charged to expense on a straight-
line basis over a five-year period. Prepaid registration fees are
charged to expense as the related shares are issued.
(f) Dividends and distributions--Dividends from net investment
income are declared daily and paid monthly. Distributions of capital
gains are recorded on the ex-dividend dates. Distributions in excess
of realized capital gains are due primarily to differing tax
treatments for futures transactions and post-October losses.
(g) Reclassification--Generally accepted accounting principles
require that certain components of net assets be reclassified to
reflect permanent differences between financial reporting and tax
purposes. Accordingly, current year's permanent book/tax differences
of $102 have been reclassified from paid-in capital in excess of par
to accumulated net realized capital losses. These reclassifications
have no effect on net assets or net asset values per share.
2. Investment Advisory Agreement and
Transactions with Affiliates:
The Fund has entered into an Investment Advisory Agreement with Fund
Asset Management, L.P. ("FAM"). The general partner of FAM is
Princeton Services, Inc. ("PSI"), an indirect wholly-owned
subsidiary of Merrill Lynch & Co., Inc. ("ML & Co."), which is the
limited partner. The Fund has also entered into a Distribution
Agreement and Distribution Plans with Merrill Lynch Funds
Distributor, Inc. ("MLFD" or "Distributor"), a wholly-owned
subsidiary of Merrill Lynch Group, Inc.
FAM is responsible for the management of the Fund's portfolio and
provides the necessary personnel, facilities, equipment and certain
other services necessary to the operations of the Fund. For such
services, the Fund pays a monthly fee based upon the average daily
value of the Fund's net assets at the following annual rates: 0.55%
of the Fund's average daily net assets not exceeding $500 million;
0.525% of average daily net assets in excess of $500 million but not
exceeding $1 billion; and 0.50% of average daily net assets in
excess of $1 billion. The Investment Advisory Agreement obligates
FAM to reimburse the Fund to the extent the Fund's expenses
(excluding interest, taxes, distribution fees, brokerage fees and
commissions, and extraordinary items) exceed 2.5% of the Fund's
first $30 million of average daily net assets, 2.0% of the next $70
million of average daily net assets, and 1.5% of the average daily
net assets in excess thereof. FAM's obligation to reimburse the Fund
is limited to the amount of the management fee. No fee payment will
be made to FAM during any fiscal year which will cause such expenses
to exceed expense limitations at the time of payment. For the year
ended July 31, 1996, FAM earned fees of $328,665, of which $65,688
was voluntarily waived.
<PAGE>
Pursuant to the distribution plans (the "Distribution Plans")
adopted by the Fund in accordance with Rule 12b-1 under the
Investment Company Act of 1940, the Fund pays the Distributor
ongoing account maintenance and distribution fees. The fees are
accrued daily and paid monthly at annual rates based upon the
average daily net assets of the shares as follows:
Account Distribution
Maintenance Fee Fee
Class B 0.25% 0.25%
Class C 0.25% 0.35%
Class D 0.10% --
Pursuant to a sub-agreement with the Distributor, Merrill Lynch,
Pierce, Fenner & Smith Inc. ("MLPF&S"), a subsidiary of ML & Co.,
also provides account maintenance and distribution services to the
Fund. The ongoing account maintenance fee compensates the
Distributor and MLPF&S for providing account maintenance services to
Class B, Class C and Class D shareholders. The ongoing distribution
fee compensates the Distributor and MLPF&S for providing shareholder
and distribution-related services to Class B and Class C
shareholders.
For the year ended July 31, 1996, MLFD earned underwriting discounts
and MLPF&S earned dealer concessions on sales of the Fund's Class A
and Class D Shares as follows:
MLFD MLPF&S
Class A $318 $53,720
Class D $116 $ 6,279
For the year ended July 31, 1996, MLPF&S received contingent
deferred sales charges of $58,961 and $26 relating to transactions
in Class B and Class C Shares, respectively.
Merrill Lynch Financial Data Services, Inc. ("MLFDS"), a wholly-
owned subsidiary of ML & Co., is the Fund's transfer agent.
<PAGE>
NOTES TO FINANCIAL STATEMENTS (concluded)
Accounting services are provided to the Fund by FAM at cost.
Certain officers and/or trustees of the Fund are officers and/or
directors of FAM, PSI, MLPF&S, MLFDS, MLFD, and/or ML & Co.
3. Investments:
Purchases and sales of investments, excluding short-term securities,
for the year ended July 31, 1996 were $30,696,499 and $35,931,236,
respectively.
Net realized and unrealized gains (losses) as of July 31, 1996 were
as follows:
Realized Unrealized
Losses Gains
Long-term investments $ (45,344) $ 2,153,767
Financial futures
contracts (239,067) --
----------- -----------
Total $ (284,411) $ 2,153,767
=========== ===========
As of July 31, 1996, net unrealized appreciation for Federal income
tax purposes aggregated $2,153,767, of which $2,378,014 related to
appreciated securities and $224,247 related to depreciated
securities. The aggregate cost of investments at July 31, 1996 for
Federal income tax purposes was $54,701,947.
4. Beneficial Interest Transactions:
Net decrease in net assets derived from beneficial interest
transactions was $3,455,361 and $5,201,307 for the years ended July
31, 1996 and July 31, 1995, respectively.
Transactions in shares of beneficial interest for each class were as
follows:
Class A Shares for the Year Dollar
Ended July 31, 1996 Shares Amount
<PAGE>
Shares sold 27,717 $ 288,349
Shares issued to share-
holders in reinvestment
of dividends 16,771 174,647
----------- -----------
Total issued 44,488 462,996
Shares redeemed (144,883) (1,510,591)
----------- -----------
Net decrease (100,395) $(1,047,595)
=========== ===========
Class A Shares for the Year Dollar
Ended July 31, 1995 Shares Amount
Shares sold 49,385 $ 491,560
Shares issued to share-
holders in reinvestment of
dividends 20,298 204,295
----------- -----------
Total issued 69,683 695,855
Shares redeemed (249,214) (2,473,727)
----------- -----------
Net decrease (179,531) $(1,777,872)
=========== ===========
Class B Shares for the Year Dollar
Ended July 31, 1996 Shares Amount
Shares sold 418,920 $ 4,377,666
Shares issued to share-
holders in reinvestment
of dividends 126,666 1,318,894
----------- -----------
Total issued 545,586 5,696,560
Automatic conversion
of shares (6,671) (68,278)
Shares redeemed (848,447) (8,794,304)
----------- -----------
Net decrease (309,532) $(3,166,022)
=========== ===========
Class B Shares for the Year Dollar
Ended July 31, 1995 Shares Amount
Shares sold 500,298 $ 5,026,448
Shares issued to share-
holders in reinvestment
of dividends 145,027 1,460,745
----------- -----------
Total issued 645,325 6,487,193
Shares redeemed (1,109,526) (11,061,375)
----------- -----------
Net decrease (464,201) $(4,574,182)
=========== ===========
<PAGE>
Class C Shares for the Year Dollar
Ended July 31, 1996 Shares Amount
Shares sold 87,093 $ 913,147
Shares issued to share-
holders in reinvestment
of dividends 2,971 30,908
----------- -----------
Total issued 90,064 944,055
Shares redeemed (7,794) (80,355)
----------- -----------
Net increase 82,270 $ 863,700
=========== ===========
Class C Shares for the Period
October 21, 1994++ to Dollar
July 31, 1995 Shares Amount
Shares sold 38,161 $ 389,432
Shares issued to share-
holders in reinvestment of
dividends 559 5,738
----------- -----------
Total issued 38,720 395,170
Shares redeemed (2,374) (24,700)
----------- -----------
Net increase 36,346 $ 370,470
=========== ===========
[FN]
++Commencement of Operations.
Class D Shares for the Year Dollar
Ended July 31, 1996 Shares Amount
Shares sold 47,017 $ 496,152
Automatic conversion
of shares 6,666 68,278
Shares issued to share-
holders in reinvestment
of dividends 1,532 15,967
----------- -----------
Total issued 55,215 580,397
Shares redeemed (65,910) (685,841)
----------- -----------
Net decrease (10,695) $ (105,444)
=========== ===========
<PAGE>
Class D Shares for the Period
October 21, 1994++ to Dollar
July 31, 1995 Shares Amount
Shares sold 76,912 $ 777,785
Shares issued to share-
holders in reinvestment of
dividends 673 6,941
----------- -----------
Total issued 77,585 784,726
Shares redeemed (428) (4,449)
----------- -----------
Net increase 77,157 $ 780,277
=========== ===========
[FN]
++Commencement of Operations.
5. Capital Loss Carryforward:
At July 31, 1996, the Fund had a net capital loss carryforward of
approximately $1,168,000, of which $881,000 expires in 2003 and
$287,000 expires in 2004. This amount will be available to offset
like amounts of any future taxable gains.
<AUDIT-REPORT>
INDEPENDENT AUDITORS' REPORT
The Board of Trustees and Shareholders,
Merrill Lynch Minnesota Municipal Bond Fund of
Merrill Lynch Multi-State Municipal Series Trust:
We have audited the accompanying statement of assets and
liabilities, including the schedule of investments, of Merrill Lynch
Minnesota Municipal Bond Fund of Merrill Lynch Multi-State Municipal
Series Trust as of July 31, 1996, the related statements of
operations for the year then ended and changes in net assets for
each of the years in the two-year period then ended, and the
financial highlights for each of the years in the four-year period
then ended and for the period March 27, 1992 (commencement of
operations) to July 31, 1992. These financial statements and the
financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these
financial statements and the financial highlights based on our
audits.
<PAGE>
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial
statements and the financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements.
Our procedures included confirmation of securities owned at July 31,
1996 by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights
present fairly, in all material respects, the financial position of
Merrill Lynch Minnesota Municipal Bond Fund of Merrill Lynch Multi-
State Municipal Series Trust as of July 31, 1996, the results of its
operations, the changes in its net assets, and the financial
highlights for the respective stated periods in conformity with
generally accepted accounting principles.
Deloitte & Touche LLP
Princeton, New Jersey
September 6, 1996
</AUDIT-REPORT>
IMPORTANT TAX INFORMATION (unaudited)
All of the net investment income distributions paid monthly by
Merrill Lynch Minnesota Municipal Bond Fund during its taxable year
ended July 31, 1996 qualify as tax-exempt interest dividends for
Federal income tax purposes.
Additionally, there were no capital gains distributed by the Fund
during the year.
Please retain this information for your records.
OFFICERS AND TRUSTEES
<PAGE>
Officers and Trustees
Arthur Zeikel, President and Trustee
James H. Bodurtha, Trustee
Herbert I. London, Trustee
Robert R. Martin, Trustee
Joseph L. May, Trustee
Andre F. Perold, Trustee
Terry K. Glenn, Executive Vice President
Vincent R. Giordano, Senior Vice President
Donald C. Burke, Vice President
Kenneth A. Jacob, Vice President
Fred K. Stuebe, Vice President
Gerald M. Richard, Treasurer
Jerry Weiss, Secretary
Custodian
State Street Bank and Trust Company
P.O. Box 351
Boston, Massachusetts 02101
Transfer Agent
Merrill Lynch Financial Data Services, Inc.
4800 Deer Lake Drive East
Jacksonville, Florida 32246-6484
(800) 637-3863
